Ropes & Gray Represents First Lien Lenders in Recapitalization of K&N Engineering

In The News
February 17, 2023

Ropes & Gray advised an ad hoc group of first lien lenders to K&N Engineering, Inc. On February 16, K&N announced the closing of a recapitalization transaction that reduced its debt by approximately $250 million and participating first lien lenders invested $60 million of new money into the business. K&N previously entered into a Restructuring Support Agreement with 100% of its first lien lenders, second lien lenders and equity holders. As a result of the transaction, first lien lenders control a majority of the equity of K&N.

Headquartered in Riverside, California, K&N Engineering is a manufacturer of air filters, cold air intake systems, oil filters, performance parts, and other related vehicle applications.

The Ropes & Gray team was led by business restructuring partners Ryan Preston Dahl and Matthew Roose and associate Eric Sherman and included capital solutions & private credit partners Leonard Klingbaum, Alyson Gal, Milap Patel and Jonathan Gill and associates Lisa Chan, Courtney Jones and Risa Kuroda, tax partner Leo Arnaboldi, employment & benefits partners Danna Kivell and Pascal Mayer and employment & benefits associate John Milani.